SYDNEY: Hancock & Gore Limited (H&G) has entered a binding agreement with United Kingdom-based Schoolblazer Limited to merge with its 100%-owned subsidiary Mountcastle Group.

The combined business of Mountcastle and Schoolblazer will represent a global uniforms platform with school wear segment leadership positions in the UK, Australia and New Zealand.

H&G has entered into a binding agreement to acquire 100% of Schoolblazer at an equity value of £31m (c.A$60m), subject to H&G shareholder approval.

Schoolblazer has grown rapidly since its foundation in 2004 to become the dominant retailer to UK large independent schools with an estimated 30% segment share, servicing c.240 schools and c.140,000 pupils across the UK. With an innovative online offering, a new approach to product and design and “Limitless” sportswear brand, Schoolblazer has transformed the market for independent schools and their parents.

Schoolblazer is expected to deliver FY24 revenue of £26.0m (c.A$50.4m) and EBITDA of £4.2m (c.A$8.1m).

The merger with Mountcastle will see Schoolblazer continuing to develop and grow their UK operations and begin developing their unique offering in the Australian market before further global expansion.

Tim James, Co-Founder of Schoolblazer, will remain as Chairman of the UK business. He will join the H&G board as an Executive Director and will be the largest shareholder of H&G, holding c.14.6% of H&G shares post-merger. Louise Crofts, currently Managing Director of Schoolblazer will remain in place alongside the existing management team. Robin Horsell, Co-Founder of Schoolblazer will play an active consultancy role in building the Schoolblazer business in Australia and also become a material shareholder of H&G, holding c.4.9% of H&G shares post-merger.

Schoolblazer complements Mountcastle’s offering in the Australian school wear market, including identified procurement synergies across common suppliers and a balanced seasonality with peak back to school periods in opposite hemispheres to smooth profitability and working capital cycles.

The combined Mountcastle and Schoolblazer Group will be led by Mountcastle Executive Chairman and H&G Director, Steve Doyle, supported by a deep management team with global experience. Mountcastle and Schoolblazer executives will own c.25% of H&G.

Tim James, Schoolblazer Co-Founder said: “This is an exciting time for Schoolblazer and represents the next chapter of our growth story. It gives opportunities for our team and our customers, bringing access to more product and scale. We are certain that this will allow us to bring more change and disruption to the market, for the benefit of our customers and our people.”

Sandy Beard, H&G Executive Chairman said: “We are full of admiration for what Schoolblazer have achieved in the UK and are looking forward to bringing their skills and know-how to play in the Australian market”.